Currently, the model of providing wireless telecommunication services involves mobile service providers expending enormous amounts of capital to acquire network infrastructure equipment, and licenses to use the Federal Communication Commission (FCC) regulated operating frequencies. These capital expenditures can result in increased consumer billing rates that can often inflate far above the actual cost of service.
In addition, the use of regulated licensed frequencies itself can be problematic, due to the lengthy, expensive, and uncertain regulatory review process. Oftentimes, the review process can be susceptible to political and commercial interests and pressures. For these same reasons, the regulatory review process can also be problematic, and difficult to navigate when a mobile service provider wishes to introduce new technologies and applications to the public.
In recent years, unlicensed frequencies, primarily in the 2.4 GHz range have been used for wireless LANs. Examples include Wi-Fi hot spots configured on a site-specific basis to provide on-site connectivity to access points. For the most part, the wireless LAN technologies do not have sufficient reach to extend beyond the site of the wireless network. Therefore, service may be often available only to a limited area within the relevant premises. For example, wireless LAN connectivity in a lobby, or business lounge of a hotel may not extend to the rooms on an upper floor or outside the building.
The end result of these limitations is a wireless broadband market that cultivates high consumer retail prices, while delaying the introduction and implementation of new technologies.